SUPPLY:
Consumers desire, ability and will to purchase goods at various prices.
DEMAND:
Willingness and ability of the producers to offer the goods in the market for sale at various prices.
QUANTITY SUPPLIED:
Quantity of goods supplied at a particular given price.
QUANTITY DEMANDED:
Quantity of goods purchased at a particular given price.
NON PRICE DETERMINANTS OF SUPPLY AND DEMAND:
SUPPLY:
S:Q(X)=f(P,CP,Prg,Pj,R,Ap,Ep)
DEMAND:
Consumers desire, ability and will to purchase goods at various prices.
DEMAND:
Willingness and ability of the producers to offer the goods in the market for sale at various prices.
QUANTITY SUPPLIED:
Quantity of goods supplied at a particular given price.
QUANTITY DEMANDED:
Quantity of goods purchased at a particular given price.
NON PRICE DETERMINANTS OF SUPPLY AND DEMAND:
SUPPLY:
- COST OF PRODUCTION
- PROFITABILITY OF ALTERNATIVE PRODUCTS
- PROFITABILITY OF GOODS IN JOINT SUPPLY
- NATURE&OTHER RANDOM SHOCKS
- AIMS ON PRODUCERS
- EXPECTATIONS OF PRODUCERS
- SEASONALITY
- INFORMATION ASYMMETRY
S:Q(X)=f(P,CP,Prg,Pj,R,Ap,Ep)
DEMAND:
- TASTES(NUMBER AND PRICE OF SUBSTITUTE GOODS)
- NUMBER AND PRICE OF COMPLEMENTARY GOODS
- INCOME (DISTRIBUTION OF INCOME)
- EXPECTATIONS
- INFORMATION ASYMMETRY
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